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May 8, 2009
Over the next five years in Europe, we expect to see more than 90m new mobile broadband computing subscriptions. As prices decline, postpaid mobile broadband can compete with basic fixed broadband offerings, so there is a lot of room for growth. We also believe prepaid broadband will play a major role in this growth, since it has a large addressable market both in high-income markets with developed fixed broadband infrastructure (predominantly in Western Europe) and in low-income countries where there is a lack of fixed broadband (Central and Eastern Europe). Operators that have invested heavily in 3G and are now beginning to invest in 4G need to make sure that they get the most revenue from mobile broadband. In order to do this, they must price mobile broadband perfectly in relation to two factors: The affordability of mobile broadband (reflected in the level of personal disposable income) and the availability of fixed broadband — that is, its penetration. (For more, see our recent Insider on mobile broadband services in Europe.)
First, operators need to choose between focusing on prepaid or postpaid. For instance, in Ukraine, where affordability is low and there is demand for mobile broadband because of low fixed broadband penetration, prepaid offers are much more likely to take off. Entry-level pricing needs to be very low, and there should be no monthly minimums, or they should be achievable. In France on the other hand — where the fixed broadband penetration rate is one of the highest in Europe and affordability is high — the revenue opportunity will initially lie closer to postpaid. That means providing stand-alone service offerings or bundling mobile broadband with mobile or fixed services.
Second, operators need to pick the pricing strategy that best suits the market. Postpaid offers have been around for a while, and operators are skilled at them. Prepaid mobile broadband, on the other hand, is new, so let’s look at what will make prepaid offerings successful in Europe. We picked Play Mobile in Poland to represent Central and Eastern Europe and 3 UK in the UK to represent the Western part.
Prepaid mobile broadband offers in Poland and UK, April 2009
— Bakhyt Weeks, Analyst, EMEA
Related content:
Europe to See Huge Growth in Mobile Broadband Services despite Recession
Telecom Insider published May 2009
More than 10.7m new mobile broadband connections were added in Europe in 2008, compared with 6.5m in 2007. We believe that in spite of the economic slowdown, mobile broadband adoption will continue to grow relentlessly across This Telecom Insider analyzes the growth potential of mobile broadband computing in Europe, focusing on the three main factors affecting adoption: Networks, user devices and pricing. It looks in detail at the four markets that best represent the different regions of Europe: Poland, Russia, Spain and the UK.
Central & Eastern Europe Mobile Data Forecasts, Q1 2009
Forecasts published March 2009
Updated on a quarterly basis, our Mobile Data Forecast products provide complete pictures of demand trends for eight geographical markets in Central & Eastern Europe. The Excel output includes five years of historical data and five years of market projections for metrics such as penetration, mobile subscriptions (by type of package, by operator or MVNO and by network technology), users of specific data services (SMS, music, etc.), MOU, ARPS (by operator, by subscription type, by service, by application) and revenue (by messaging and non-messaging applications). The Forecasts are based on extensive field research and use a consistent methodology, aiming to capture the total spending on mobile data services in each market.
Mobile Broadband Computing Services: Complement or Substitute for Fixed Broadband?
Research Report published March 2009
This report examines mobile broadband services enabled by 3G and WiMAX networks on a global, regional and market-by-market basis, focusing on service plans offered for computing devices (mainly netbooks, laptops and MIDs). It assesses the positioning of mobile broadband relative to fixed alternatives, helping to identify the best strategies for both developed and emerging markets. Built on extensive case studies, the report provides a five-year outlook on mobile broadband computing trends, including subscriber numbers, penetration levels and revenue expectations.
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